Lucent Wins Handyphone Deals

Lucent Technologies wins contracts to expand Personal Handyphone System networks for China Telecom in Fuzhou, Xiamen, and Quanzhou

October 20, 2003

3 Min Read

BEIJING — Lucent Technologies (NYSE: LU) announced today that it has signed contracts worth more than US$20 million with Fujian PTA of the China Telecom to expand the carrier's Personal Handyphone System networks in Fuzhou, Xiamen and Quanzhou.

Fujian will upgrade its existing 5ESS® network with hardware and software that will be the first deployment of Lucent's 5E-XC™ High Capacity Switch outside North America.

The contracts mark the seventh expansion of PHS systems in these cities to accommodate rapid subscriber growth since the initial deployment in early 2001. After the latest expansion, the total capacity for the three cities will be 2.3 million subscribers.

In Quanzhou, Fujian PTA will deploy the new version of the 5E-XC™ Switch for global markets (see separate announcement) that enables service providers to evolve their existing 5ESS® circuit switched networks to Internet Protocol networks.

This version of the 5E-XC™ switch more than triples the capacity of the previous switch in networks outside North America, simplifies network configuration and dramatically cuts power consumption and space required.

As with the North American version, adding subscribers and network interfaces to embedded base switches greatly reduces the capital and operations costs of a service provider because they will not need to grow additional switches.

Fujian PTA also will deploy a 5E-XC™ module that provides advanced operations, administration, management and provisioning support with an Internet Protocol (IP) interface, enabling, for example, a customer to rapidly and more cost effectively download software upgrades.

In addition, Fujian will deploy a new Lucent PHS feature that enables Short Message Services (SMS) messages to be sent across mobile, fixed wireless and wireline networks. The SMS interworking feature is one of five new PHS enhancements Lucent announced today (see today's 5E-XC™ Switch announcement).

"After this expansion, we will have grown from the initial 230 thousand subscribers in early 2001 to 2.3 million subscriber capacity with the 5ESS®-based PHS systems in Fuzhou, Xiamen and Quanzhou. The coverage now extends from urban to rural areas, and serves more than 1.8M subscribers," said Mr.JianXiang Duan, vice general manager of Fujian PTA, China Telecom. "The 5ESS®-based PHS system has become one of our key businesses. With Lucent Technologies as our main supplier and partner, we will continue to deliver high network performance, new products and value added services for our subscribers."

"Fujian's selection of Lucent to support its rapidly growing subscriber base further validates our leadership in switching technology and solutions. We appreciate the opportunity to offer this cutting-edge 5E-XC™ switch technology to Fujian PTA and its PHS customers," said Jason Chi, chairman and president of Lucent Technologies China.

The Personal Handyphone System uses a wireless telephone similar to a cordless phone but more sophisticated, providing wireless voice and data services, and limited mobility in a particular geographic area. While maintaining the same features their customer is accustomed to in their homes and businesses, the PHS can be deployed as a citywide or rural portable telephone network, enabling users to travel throughout a community and still receive service, up to 500 meters from the nearest micro cell site.

As one of the world's leading infrastructure providers , Lucent Technologies offers best-in-class reliability and scalability in its 5ESS®-based PHS end-to-end network solutions that are becoming increasingly important for service providers to build a profitable network. In addition, Lucent also develops a high-performance value-added PHS system based on Lucent's Service Intelligent Architecture, which enables a full array of innovative services including Short Message Service, Hi-Mode browser phone, high-speed wireless data, prepaid services, simultaneous ringing, location-based services and Centrex service.

For more information about the newly-introduced international version of the 5E-XC™ High Capacity Switch, please go to www.lucent.com/5e-xc-i.

For more information about Lucent's PHS solution, please see www.lucent.com/phs.

Lucent Technologies Inc.

China Telecommunications Corp.

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